On Wednesday, North Carolina Attorney General Jeff Jackson joined 11 other state attorneys general in a letter calling on Congress to refund businesses and consumers for increased costs, including $3.5 billion that he said was imposed on North Carolinians, after the Supreme Court ruled the federal government’s tariffs unlawful.
“North Carolina’s businesses and families paid $3.5 billion for tariffs that a court has now ruled were illegal,” he said in a press release. “That money came straight out of people’s grocery bills and small business budgets. The administration told the court it would pay people back, and now they need to do it.”
Jackson said businesses and consumers nationwide have paid approximately $166 billion in unlawful International Emergency Economic Powers Act (IEEPA) tariffs. The letter asks Congress to pass legislation requiring the presidential administration to reimburse importers for these illegal tariff charges, with interest. The attorneys general are also asking Congress to direct businesses that passed along tariff costs to consumers to reimburse their customers who ultimately bore the financial burden.
He said he and the coalition are pushing for new legislation to create a fair, uniform, and fast process for all affected importers to get refunds, as the US Customs and Border Protection (CBP) is trying to place the burden on the 330,000 importers to request refunds.
CBP keeps a record of every IEEPA tariff paid by American direct importers and has stated that refunds will only be available via a new direct deposit platform, which only 6% of importers are currently registered for, and they may need to navigate multiple refund processes depending on their shipment’s status, according to the attorney general.
This isn’t the first time Jackson has called out the legality of the tariffs and sought refunds.
He signed on to the March 5 suit filed by 22 state attorneys general and two Democratic governors. The state of Oregon serves as the lead plaintiff.
The complaint filed in the US Court of International Trade seeks a declaration that the so-called “Section 122” tariffs are illegal. The states also seek refunds.
President Donald Trump imposed 10% tariffs in February based on Section 122 of the Trade Act of 1974. The tariffs could rise to 15%. Section 122 tariffs were designed to replace tariffs issued under the International Emergency Economic Powers Act. The US Supreme Court invalidated those tariffs last month.
The new tariffs could cost North Carolina households $800 to $1,300 this year, according to an estimate from Jackson’s office.
Jackson cited John Locke Foundation research this month as he touted the multistate lawsuit.
“These new 15 percent tariffs would apply to an estimated $1.2 trillion worth of annual imports nationally,” according to Jackson’s news release. “North Carolina’s agriculture industry could take an especially hard hit. The John Locke Foundation estimated that North Carolina’s farming industry and rural economy would lose about $1.9 billion and 8,000 jobs because of the IEEPA tariffs. The new tariffs threaten similar pain to our rural economy if other countries maintain retaliatory tariffs.”
The attorney general references “How Tariffs Threaten North Carolina Agriculture: NC Farmers At Risk,” a January Locke report authored by Jeffrey Dorfman, professor of agricultural and resource economics at North Carolina State University.
Earlier this month, Democratic Gov. Josh Stein joined 18 other Democratic governors in a letter urging Congress to reclaim its authority over tariffs following the 6-3 US Supreme Court ruling that President Donald Trump cannot use federal emergency powers to impose them.
“Too many North Carolina families are already feeling the squeeze of high prices, and the volatility caused by the federal administration’s tariffs is further exacerbating their pain,” he said in a press release.“These tariffs are hurting consumers who are now paying higher costs and farmers selling goods overseas. Congress must act to reassert its authority on tariffs to lower costs and expand economic opportunity for North Carolinians.”
Donald Bryson, CEO of the John Locke Foundation, said that the Supreme Court reaffirmed a foundational principle: the power to tax and regulate trade belongs to Congress.
“Tariffs are taxes, and no president may impose sweeping new taxes on the American people through creative interpretations of emergency statutes,” he said.
“These tariffs increased costs for families, disrupted supply chains, hurt North Carolina businesses, and triggered retaliation against our farmers and manufacturers,” Bryson said. “By rejecting this misuse of emergency authority, the Court has restored clear constitutional limits and reinforced that major economic policy must come from the legislative branch.”